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India Needs ‘Digi Yatra’ For Investors To Boost Ease of Doing Business: Kotak AMC’s Nilesh Shah
- Economy
- Published on 23 April 2026 2:07 PM IST
Drawing a parallel to the biometric-enabled seamless entry system used at Indian airports, Shah argued that the government must establish similar friction-free pathways for foreign direct investors, local entrepreneurs, and portfolio managers.
The Gist
India needs to create a Digi Yatra for investors to streamline capital flows and bridge the gap between federal policy intent and local execution, Nilesh Shah, Managing Director of Kotak Mahindra AMC, said in a recent strategy note.
Drawing a parallel to the biometric-enabled seamless entry system used at Indian airports, Shah argued that the government must establish similar friction-free pathways for foreign direct investors, local entrepreneurs, and portfolio managers. While acknowledging legislative steps like the Jan Vishwas bill, Shah noted that "intent at the federal level is not converting to action on the ground," urging for a "functioning Digi Yatra now more than ever" to help businesses navigate global volatility.
Despite a "fundamentally weakening corporate outlook" due to surging energy prices and supply chain disruptions, Kotak Mahindra AMC maintained its long-term conviction in India’s growth. Shah advocated for a strict bottom-up stock selection strategy, prioritizing businesses with high resilience to geopolitical shocks and reasonable valuations.
Sectoral Strategy and AI Transition
Shah highlighted specific opportunities in Banking and Financial Services, citing strong deposit franchises, and Healthcare, driven by rising incomes and industry consolidation. In the Materials sector, he noted select opportunities in cement, despite localized challenges such as packaging shortages.
Addressing the disruption in the IT sector, Shah remained optimistic about historical resilience. "Indian IT companies are not immune from AI disruption," he noted, but suggested that firms capable of delivering "cheaper, better, and faster" enterprise AI solutions would emerge as winners.
Monetary and Macro Outlook
On the policy front, Shah observed that the Reserve Bank of India (RBI) faces limited room for rate cuts due to inflationary pressures from energy and fertiliser costs. Instead, he suggested the central bank utilise alternative tools:
Liquidity Management: Ensuring credit demand is met to support growth.
Credit Guarantees: Replicating COVID-era schemes to shield SMEs from geopolitical shocks.
Risk Weightages: Adjusting capital requirements to improve credit transmission.
Regarding the upcoming monsoon, Shah advised analysts to look "beyond headlines." While El Niño poses a threat, he noted that a positive Indian Ocean Dipole (IOD) could mitigate the impact on the crucial July-August rainfall period.
Shah concluded by urging investors to follow their "Dharma of Asset Allocation," advising calibrated buying during corrections as large and mid-cap valuations sit near historical averages.
India needs to create a "Digi Yatra" for investors to streamline capital flows and bridge the gap between federal policy intent and local execution, Nilesh Shah, Managing Director of Kotak Mahindra AMC, said in a recent strategy note.
Drawing a parallel to the biometric-enabled seamless entry system used at Indian airports, Shah argued that the government must establish similar friction-free pathways for foreign direct investors, local entrepreneurs, and portfolio managers. While acknowledging legislative steps like the Jan Vishwas bill, Shah noted that "intent at the federal level is not converting to action on the ground," urging for a "functioning Digi Yatra now more than ever" to help businesses navigate global volatility.
Despite a "fundamentally weakening corporate outlook" due to surging energy prices and supply chain disruptions, Kotak Mahindra AMC maintained its long-term conviction in India’s growth. Shah advocated for a strict bottom-up stock selection strategy, prioritising businesses with high resilience to geopolitical shocks and reasonable valuations.
Sectoral Strategy and AI Transition
Shah highlighted specific opportunities in Banking and Financial Services, citing strong deposit franchises, and Healthcare, driven by rising incomes and industry consolidation. In the Materials sector, he noted select opportunities in cement, despite localised challenges such as packaging shortages.
Addressing the disruption in the IT sector, Shah remained optimistic about historical resilience. "Indian IT companies are not immune from AI disruption," he noted, but suggested that firms capable of delivering "cheaper, better, and faster" enterprise AI solutions would emerge as winners.
Monetary and Macro Outlook
On the policy front, Shah observed that the Reserve Bank of India (RBI) faces limited room for rate cuts due to inflationary pressures from energy and fertiliser costs. Instead, he suggested the central bank utilise alternative tools:
Liquidity Management: Ensuring credit demand is met to support growth.
Credit Guarantees: Replicating COVID-era schemes to shield SMEs from geopolitical shocks.
Risk Weightages: Adjusting capital requirements to improve credit transmission.
Regarding the upcoming monsoon, Shah advised analysts to look "beyond headlines." While El Niño poses a threat, he noted that a positive Indian Ocean Dipole (IOD) could mitigate the impact on the crucial July-August rainfall period.
Shah concluded by urging investors to follow their "Dharma of Asset Allocation," advising calibrated buying during corrections as large and mid-cap valuations sit near historical averages.
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